The article shows the topical issues of financing higher education institutions. The study includes general estimates of higher education indicators in Ukraine and abroad. The analysis of the current state and trends of financing higher education institutions has identified the problematic aspects and threats to its further development in the light of experience. The author has offered the ways of further development of the mechanism of financing of higher education institutions. And this allows to expand the range of sources of attraction of financial resources for activation of their economic activity, as well as to achieve greater autonomy. The purpose of the article is to deepen theoretical and methodological foundations and to develop practical recommendations for financing higher education institutions that will give the opportunity to provide the necessary prerequisites for their development.